Investment bank aims to expand tokenization and blockchain trading with a new independent entity.
Goldman Sachs’ New Venture
Goldman Sachs plans to spin out its cryptocurrency platform, creating a separate company for trading and developing blockchain-based financial tools. This initiative, reported by Bloomberg on November 18, will focus on tokenized assets and leveraging blockchain networks.
Partnering for Expansion
The company seeks partnerships to enhance the new platform’s offerings. Tradeweb Markets, an electronic trading entity, is expected to be a key strategic partner in this venture.
Timeline and Regulatory Approval
Mathew McDermott, Goldman Sachs’ global head of digital assets, stated the spinout is targeted for completion in 12 to 18 months, subject to regulatory clearance. Plans remain in the preliminary stage, with strategic developments underway.
Industry-Driven Objectives
“It’s in the best interest of the market to have something that is industry-owned,” McDermott shared. The bank’s approach reflects its commitment to industry-driven innovation.
Focus on Tokenized Assets
Goldman Sachs aims to develop marketplaces for tokenized real-world assets (RWAs) such as U.S. Treasury debt and other financial instruments. The firm emphasizes speed and expanded collateral options as its competitive edge.
Institutional Clients Over Retail
The platform will cater to institutional clients rather than retail investors, operating exclusively on permissioned blockchains. This focus aligns with the bank’s existing strategy.
Momentum from Digital ETFs
McDermott attributes renewed interest in crypto to the increasing adoption of exchange-traded funds (ETFs) for digital assets. Several Bitcoin and Ether ETFs have received regulatory approval this year, spurring market growth.
Surge in Tokenized Asset Demand
The demand for tokenized RWAs offering low-risk yields continues to rise. As of November 14, tokenized U.S. Treasury debt reached $2.4 billion in total value locked, showcasing the growing interest in blockchain-driven financial instruments.
Pioneering a Tokenized Future
Goldman Sachs’ decision to spin out its crypto platform underscores its dedication to blockchain innovation. By focusing on tokenized assets and strategic partnerships, the firm aims to reshape the digital financial landscape while prioritizing regulatory compliance.
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